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Are Canadians taxed on lottery prizes?

Topic closed. 9 replies. Last post 8 years ago by KY Floyd.

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Bondi Junction
Australia
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December 24, 2007
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Posted: December 9, 2008, 3:16 am - IP Logged

I know that Americans are taxed on lottery prizes over $600. In the UK and Australia all lottery prizes are tax free. What is the situation in Canada?

    savagegoose's avatar - ProfilePho
    adelaide sa
    Australia
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    April 11, 2006
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    Posted: December 9, 2008, 9:52 am - IP Logged

    I know that Americans are taxed on lottery prizes over $600. In the UK and Australia all lottery prizes are tax free. What is the situation in Canada?

    not quite right, the jackpot isnt taxed here in Australia, but there is a tax. You see our gov isnt too keen on waiting around for jackpots to be won before collecting its tax. So there is a tax paid by every player at the time the ticket is purchased.

     

    so no winnings are taxed , but its not tax free.

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      Amazing Grace's avatar - lion
      rainbow lake
      Canada
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      November 2, 2005
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      Posted: December 9, 2008, 10:01 am - IP Logged

      not quite right, the jackpot isnt taxed here in Australia, but there is a tax. You see our gov isnt too keen on waiting around for jackpots to be won before collecting its tax. So there is a tax paid by every player at the time the ticket is purchased.

       

      so no winnings are taxed , but its not tax free.

      No taxes on Canadian lotteries,

      But no claiming the tickets you buy also.

      Secret to $uccess=Law of Attraction

        crystaltips's avatar - Lottery-025.jpg
        London
        United Kingdom
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        February 20, 2008
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        Posted: December 9, 2008, 11:17 am - IP Logged

        No lottery is tax free. You pay one way or the other, whether you pay before or after.

         

        Personally, I like the way we do things in the UK. You pay your tax when you buy the ticket. Then all prizes appear to be tax free but actually aren't. I prefer this to the way the U.S. Lotteries do things and claw all the tax back at the end, so you actually end up getting less than the advertised prize. That would slightly annoy me.

         

        :D

        "Depend on the rabbit's foot if you will, but remember it didn't work for the rabbit." - R. E. Shay.

          MillionsWanted's avatar - 24Qa6LT

          Norway
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          December 10, 2004
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          Posted: December 9, 2008, 11:25 am - IP Logged

          In Norway there's no taxes for playing lotteries and you can stay anonymous. 50% of the money spent goes back to the players as prizes.

          As far as I know lotteries in USA gives 50% back to the players AND charge taxes on lottery winnings in addition.

          Has always thought of it as strange that in USA where the citizens and politicians hate taxes so much they charge taxes on lottery winnings.


            United States
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            December 9, 2008
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            Posted: December 9, 2008, 1:14 pm - IP Logged

            In the USA it depends in which state you are playing? Whats the lottery tax in NY?


              United States
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              February 18, 2008
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              Posted: December 9, 2008, 1:47 pm - IP Logged

              In Norway there's no taxes for playing lotteries and you can stay anonymous. 50% of the money spent goes back to the players as prizes.

              As far as I know lotteries in USA gives 50% back to the players AND charge taxes on lottery winnings in addition.

              Has always thought of it as strange that in USA where the citizens and politicians hate taxes so much they charge taxes on lottery winnings.

              Show me an American politician that claims to hate taxes and I'll show you an American politician that is running for office and is lieing through his teeth.

                dvdiva's avatar - 8ball

                United States
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                September 17, 2003
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                Posted: December 9, 2008, 11:35 pm - IP Logged

                No taxes on Canadian lotteries,

                But no claiming the tickets you buy also.

                Sadly you better remember where and when you bought the ticket or you are SOL.

                 

                 

                Only the US and Switzerland tax lottery prizes. Something that I think they should do away with on state sponsored games.

                  Bondi Junction
                  Australia
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                  December 24, 2007
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                  Posted: December 16, 2008, 2:58 am - IP Logged

                  In the UK 12% of lottery sales goes to the Government in Lottery duty. But if you win 20 million pounds, you get the full 20 million, no taxes, no annuity nonsense.

                   

                  Lottery duty was set at 12 per cent, which was intended to ensure the Lottery would be "revenue neutral", so that the Government was compensated for revenue lost from expenditure diverted from other goods and services that are taxable to the Lottery

                  The Treasury conceded that it was difficult to calculate the exact level of Lottery duty that would ensure neutrality, but stated that 12 per cent remained "in the range of revenue neutralising rates".

                  The Chief Secretary conceded that "there is an element of course of judgement and statistical assessment here". The Treasury stated that it occasionally recalculated the computations on which the level of Lottery duty is based and had not found sufficient deviation to justify a modification in the tax rate since the introduction of the Lottery. We recommend that the Government commission and publish an independent scrutiny of the tax income lost as a result of the Lottery to ensure that tax neutrality is a valid concept.

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                    NY
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                    Posted: December 17, 2008, 1:56 am - IP Logged

                    In the USA it depends in which state you are playing? Whats the lottery tax in NY?

                    Any taxable lottery winnings will be treated as ordinary income, and taxed at whatever rate your total taxable income results in. For any sizable jackpot you can plan to pay the highest rate on the vast majority of it. Right now, NY's  top bracket is 6.85%. If you buy awinning ticket in another state, you may have to pay tax in that state, at their rate. If you buy a PB ticket in VT, for example, their top rate is about 9.5%.